BUSINESS MATHEMATICS AND STATISTICS

SUBMITTED BY
AHMED JAN DAHRI
MBA 15 (I)
ROLL # 03

SUBMITTED TO
MR. MOHSIN ALI AMUR

SHEHEED BENAZIR BHUTTO UNIVERSITY SHAHEED BENAZIRABAD

09-May-2015

Table of Contents
Introduction of Statistics.................................................................................................... 3
Some Statistical Terms...................................................................................................... 3
Population and Sample...................................................................................................... 4
Descriptive and Inferential Statistics..................................................................................... 5
History of Statistics.......................................................................................................... 5
Modern Statistics............................................................................................................. 6
Role of Statistics in Our Society.......................................................................................... 6
Independent statistics of high-quality.................................................................................... 7
Application of Statistics..................................................................................................... 7
Statistics and Sociology..................................................................................................... 7
Statistics and Government.................................................................................................. 8
Statistics and Planning...................................................................................................... 8
Statistics and Economics.................................................................................................... 8
Tabulation...................................................................................................................... 9

Introduction of Statistics
The term statistics is ultimately derived from the New Latin statisticum collegium ("council of
state") and the Italian wordstatista ("statesman" or "politician"). The German Statistik, first
introduced by Gottfried Achenwall (1749), originally designated the analysis of data about
the state, signifying the "science of state" (then called political arithmetic in English). It acquired
the meaning of the collection and classification of data generally in the early 19th century.
Statistics is a branch of Mathematics that deals with the scientific collection, organization,
presentation, analysis, and interpretation of numerical data in order to obtain useful and
meaningful information.
Collection of data refers to the process of obtaining information.
Organization of data refers to the ascertaining manner of presenting the data into tables, graphs,
or charts so that logical and statistical conclusions can be drawn from the collected
measurements.
Analysis of data refers to the process of extracting from the given data relevant information from
which numerical description can be formulated.
Interpretation of data refers to the task of drawing conclusions from the analyzed data.

Some Statistical Terms

1.) Data is any quantitative or qualitative information.
a.) Quantitative data refers to numerical information obtained from counting or measuring that
which be manipulated by any fundamental operation.
Examples:
age, I.Q. scores, height, weight, income
b.) Qualitative data refers to descriptive attributes that cannot be subjected to mathematical
operations.
Examples:
gender, citizenship, educational attainment, religion
2.) Population refers to the totality of all the elements or persons for which one has an interest at
a particular time.
For example, the members of the faculty of a school, the graduating class, the Visayan-speaking
employees of a company, the male students, etc. A particular variable of a population can be
associated to the population.
A researcher may associate a population to the ages of graduating students,, the I.Q. scores of the
employees, the income of single parent, and so on. The usual notation for population is N.

3.) Sample is a part of population determined by sampling procedures. It is usually denoted by n.

4.) Parameter is any statistical information or attribute taken from a population. It is a true value
or actual statistics since its source is the population itself.
5.) Statistic is any estimate of statistical attributes taken from a sample.
6.) Variable is a specific factor, property, or characteristic of a population or a sample which
differentiates a sample or group of samples from another group.
For example, the score obtained from a coeducation class may differ by gender. Hence, gender is
considered variable. In a catholic congregation, religion cannot be considered a variable since
every member the population is Catholic.
a.) Discrete variable is a variable that can be obtained by counting. Examples: the number of
cellphone users in a company, the number of computers in the laboratory.
b.) Continues variable is a variable that can be obtained by measuring objects or attributes.
Examples: the weight of students, the temperature in a city over a period of time, the area of
classrooms.

Population and Sample

Population and sample are two basic concepts of statistics. Population can be characterized as the
set of individual persons or objects in which an investigator is primarily interested during his or
her research problem. Sometimes wanted measurements for all individuals in the population are
obtained, but often only a set of individuals of that population are observed; such a set of
individuals constitutes a sample.

Descriptive and Inferential Statistics

There are two major types of statistics. The branch of statistics devoted to the summarization and
description of data is called descriptive statistics and the branch of statistics concerned with
using sample data to make an inference about a population of data is called inferential statistics.
Descriptive statistics includes the construction of graphs, charts, and tables, and the calculation
of various descriptive measures such as averages, measures of variation, and percentiles. In fact,
the most part of this course deals with descriptive statistics. Inferential statistics includes
methods like point estimation, interval estimation and hypothesis testing which are all based on
probability theory.
Descriptive and inferential statistics are interrelated. It is almost always necessary to use
methods of descriptive statistics to organize and summarize the information obtained from a
sample before methods of inferential statistics can be used to make more thorough analysis of the
subject under investigation. Furthermore, the preliminary descriptive analysis of a sample often
reveals features that lead to the choice of the appropriate inferential method to be later used.
Sometimes it is possible to collect the data from the whole population. In that case it is possible
to perform a descriptive study on the population as well as usually on the sample. Only when an
inference is made about the population based on information obtained from the sample does the
study become inferential.

History of Statistics
The processing of statistical information has a history that extends back to the beginning of
humanity. In the 9th century, the Islamic mathematician, Al-Kindi, was the first to use statistics
to decipher encryptedmessages and developed the first code-breaking algorithm in the House of
Wisdom in Baghdad, based onfrequency analysis. He wrote a book entitled Manuscript on
Deciphering Cryptographic Messages, containing detailed discussions on statistics. It covers
methods of cryptanalysis, encipherments, cryptanalysis of certain encipherments, and statistical
analysis of letters and letter combinations in Arabic. In the early 11th century, AlBiruni's scientific method emphasized repeated experimentation. Biruni was concerned with how
to conceptualize and prevent both systematic errors and observational biases, such as "errors
caused by the use of small instruments and errors made by human observers." He argued that if
instruments produce errors because of their imperfections or idiosyncratic qualities, then multiple
observations must be taken, analyzed qualitatively, and on this basis, arrive at a "common-sense
single value for the constant sought", whether an arithmetic mean or a "reliable estimate."

Modern Statistics
Shakespeare used a word Statist is his drama Hamlet (1602). In the past, the statistics was used
by rulers. The application of statistics was very limited but rulers and kings needed information
about lands, agriculture, commerce, population of their states to assess their military potential,
their wealth, taxation and other aspects of government.
Gottfried Achenwall used the word statistik at a German University in 1749 which means that
political science of different countries. In 1771 W. Hooper (Englishman) used the word statistics
in his translation of Elements of Universal Erudition written by Baron B.F Bieford, in his book
statistics has been defined as the science that teaches us what is the political arrangement of all
the modern states of the known world. There is a big gap between the old statistics and the
modern statistics, but old statistics also used as a part of the present statistics. During the 18th
century the English writer have used the word statistics in their works, so statistics has developed
gradually during last few centuries. A lot of work has been done in the end of the nineteenth
century.
At the beginning of the 20th century, William S Gosset was developed the methods for decision
making based on small set of data. During the 20th century several statistician are active in
developing new methods, theories and application of statistics. Now these days the availability of
electronics computers is certainly a major factor in the modern development of statistics.

Role of Statistics in Our Society

Every country needs statistics to describe its social, economic and environmental conditions.
This knowledge is needed to improve the lives and opportunities of its citizens and to create a
sound foundation for its businesses to operate. Knowledge about society which is based on
independent and high-quality statistics is a prerequisite for a democratic society. Statistics
provide the information needed for

Policy-makers to make evidence-based planning and policy decisions on national and

local level;
citizens to form opinions and hold governments accountable for their policies;
businesses to make sound decisions; and
researchers to analyse society.

National and local policies built on statistics are better at meeting their purpose and increasing
effectiveness and financial sustainability. In practice this means that, for example to plan
educational systems, governments need information on enrolment rates, completion and drop-out
rates, numbers of teachers, types of schooling, the availability of school facilities, expenditures

etc. Statistics on education can help governments to improve the lives of people and foster future
opportunities by planning educational systems on a more evidence-based basis.

Independent statistics of high-quality

Statistics need to be independent and of highquality to be relevant and useful for society. Highquality statistics should be based on the following international principles for officially produced
statistics:

Impartiality

Statistics must be produced independently of the political system to be credible.

Relevance

Statistics must meet the needs of its users.

Reliability

Statistics must portray reality in an accurate manner.

Timeliness

Statistics must be disseminated timely and punctually.

Comparability

Statistics must be consistent over time and comparable between regions and countries to make
them relevant and increase their usefulness.

Accessibility

Statistics should be free of charge, user-friendly and easily accessible for everyone.

Application of Statistics
Statistics and Sociology
Sociology is one of the social sciences aiming to discover the basic structure of human
society, to identify the main forces that hold groups together or weaken them and to learn
the conditions that transform social life. It highlights and illuminates aspects of social life
that otherwise might be only obscurely recognized and understood. The sociologist may be
called upon for help with a special problem such as social conflict, urban plight or the war on
poverty or crimes. His practical contribution lies in the ability to clarify the underlying nature
of social problems to estimate more exactly their dimensions and to identify aspects that

seem most amenable to remedy with the knowledge and skills at hand. He naturally lands in
sociological research which is the purposeful effort to learn more about society than one can
in the ordinary course of living. Keeping in view of the problem he sets forth his objectives
collects materials or data and uses statistical techniques and the knowledge and theory
already established on similar topics to achieve his objectives. So statistical data and
statistical methods are quite indispensable for sociological research studies. There is a
growing emphasis recently on social survey methods or research methodology in all
faculties of arts. Sociologists seek the help of statistical tools to study cultural change in the
society, family pattern, prostitution, crime, marriage system etc. They also study
statistically the relation between prostitution and poverty, crime and poverty, drunkness and
crime, illiteracy and crime etc. Thus statistics is of immense use in various sociological
studies.

Statistics and Government

The functions of a government are more varied and complex. Various depts. in the state are
required to collect and record statistical data in a systematic manner for an effective
administration. Data pertaining to various fields namely population, natural resources,
production both agricultural and industrial,finance,trade,exports and imports, prices, labour,
transport and communication, health, education, defence ,crimes etc. are the most
fundamental requirements of the state for its administration. It is only on this basis of such
data; the government decides on the priority areas, gives more attention to them through
target oriented programmes and studies the impact of the programmes for its future
guidelines.

Statistics and Planning

Modern age is an age of planning and statistics are indispensable for planning. According to
Tippett planning greater or lesser degree according to the government in power is the order
of the day and without statistics, planning is inconceivable. Based only on a correct
assessment of various resources both human and material of the country proper planning
can be made. A study of data relating to population, agriculture, industry, prices,
employment, health, education enables the planners to fix up time-bound targets on the
social and economic fronts evaluation of such economic and social programmes at different
stages by means of related data gathered continuously and systematically is also done to
decide whether the programmes are on towards the goal or targets set.

Statistics and Economics

In the fields of economics it is almost impossible to think of a problem which does not
require an extensive use of statistical data. Most of the laws in economics are based on a
study of a large number of units and their analysis is enabled by statistical data and the
statistical methods. The important economic aspects like production, consumption,
exchange and distribution are described, compared and correlated with the aid of statistical
tools. By a statistical study of time series on prices, sales, production one can study their
trends, fluctuations and the underlying causes. Thus statistics is indispensable in economic
analysis.

Tabulation